Baytex Energy announced a great second quarter, including outstanding results from its Eagle Ford operations.
Study: Oil and Gas Still Essential to Eagle Ford Shale Economy
For the second quarter of 2017, Baytex Energy focused 76% of its capital expenditures towards its Eagle Ford assets and they got a great payoff. Company executives credited their strong results to these assets during an earnings call this week, saying they have delivered some of the best well results to date in the Eagle Ford.
“Operationally, we have delivered outstanding results in the Eagle Ford. As I’m sure most of you are aware, our Eagle Ford assets are located in Karnes County, Texas, which ranks as one of the premier oil resources place in North America. It is the asset that generates our highest cash netback and contains over a decade of drilling inventory with new perspective trends and opportunities still emerging.”
Second Quarter Highlights in Eagle Ford
In the second quarter, Baytex earned a $9.3 million profit, compared with an $86.9 million net loss in 2016 Q2. The following are noted Eagle Ford results:
- Production averaged 38,500 BOEs per day, a 7% increase over the first quarter of 2017
- Averaged four to five drilling rigs and one to two completion crews
- Commenced production on 35 gross wells with 30-day initial gross production rates of approximately 1,500 BOEs per day, per well
- Costs to drill, complete, equip, and tie-in a well range from $4.7 million to $4.9 million, well below prediction of $5 million per well
- Three recently completed current city pads totaling 11 wells
The negative economic impact felt throughout the Eagle Ford Shale after the oil price bust of 2014-2015 bottomed out last year, according to a new study. Though the region experienced significant losses, oil and gas activity is still essential to local county economies.